Google parent Alphabet to acquire energy firm Intersect for $4.75 bn amid AI data centre push—details about the deal

Google parent company Alphabet announced Monday it would buy clean energy developer Intersect for $4.75 billion in cash plus existing debt, marking one of its largest deals to expand data center capacity.

The deal comes amid a push from Big Tech to invest in energy companies at a time when U.S. power grids are struggling to keep up with the growing energy demands of productive AI.

Speaking about the agreement, Google and Alphabet CEO Sundar Pichai said, “Intersect will help us increase capacity, work more nimbly to create new energy generation in step with new data center load, and reimagine energy solutions that will support US innovation and leadership.”

What we know about the deal

Google already owns a minority stake in Intersect from an $800 million funding round in December last year.

Under the agreement, Alphabet will acquire Intersect’s energy and data center projects currently under development or construction.

However, Intersect’s other operations will be left intact and separated from Alphabet; Reuters reported that the company’s existing operating assets in Texas and operating and underdeveloped assets in California will not be part of the deal.

The clean energy firm will also retain its own branding and continue to be led by its current CEO, Sheldon Kimbers.

“Intersect’s operations will remain separate from Alphabet and Google under the Intersect brand and will be managed by Sheldon Kimber. It will partner closely with Google’s technical infrastructure team, continue development work and pursue new joint projects, including the companies’ first co-located data center and power facility, which was announced to be under construction in Haskell County, Texas,” Alphabet said in a statement.

According to its website, Intersect currently has $15 billion worth of infrastructure in operation or under construction, with projects representing approximately 10.8 gigawatts of power expected to be online or in development by 2028.

Commenting on energy infrastructure, Alphabet said its acquisition of certain Intersect assets would help “unlock abundant, reliable and affordable energy supplies that enable the creation of data center infrastructure without passing costs on to grid customers.”

Alphabet said the deal is expected to close in the first half of 2026.